In talking to other real estate investors, most of whom specialize in flips, rentals or BRRRR’s, there is a sense out there that land development isn’t something for them. That it is too hard, takes too long, costs too much money, that you need construction experience or that it is only for the ‘Big Boys’. I can tell you that doesn’t have to be the case.
Land Development can take many forms, and can be tailored to almost any budget. You just have to pick the version that fits you best. It can be:
– Buying a vacant piece of land, subdividing & servicing the new lots
– Buying an old house on a large lot, knocking down the house, then subdividing & servicing the new lots
– Buying a house on a large lot, then subdividing & selling the excess land
– Combining 2 or more lots together into 1 larger lot
– Changing the zoning or density of a lot and selling the lot for a profit
– Completing the paperwork required to get permits approved and selling the ‘shovel ready’ project to a larger company
If you can afford to buy an old house as a flip or a rental, you can afford to buy it for Land Development.
If you think it would be overwhelming for you, it doesn’t have to be. No matter how big the project, all developments break down into a review of zoning, density, usage and bylaws and then “Out with the Old and in with the New”. What is there on the property now that you don’t need? What do you need to add to the land to get it ready for a builder? The above lends itself well to breaking that into a series of smaller tasks and then putting those tasks into a “To Do” list. By doing that you make the seemingly unmanageable into something very doable.
I also meet other investors who are getting tired of the traditional flips, BRRRR’s and rentals or who are having trouble finding properties to buy. Land Development might be the logical next step in those investors personal development.
Give it some thought. Land Development might be right for you.